Tesla Model X in China
It's not exactly a done deal, but it's close.
Tesla is almost to the point of putting ink on paper to bring manufacturing to China.
Initial reports of Tesla working on a deal for a factory in China have now been confirmed by the automaker.
Tesla issued this statement to Quartz:
“Tesla is working with the Shanghai Municipal Government to explore the possibility of establishing a manufacturing facility in the region to serve the Chinese market. As we’ve said before, we expect to more clearly define our plans for production in China by the end of the year."
"Tesla is deeply committed to the Chinese market, and we continue to evaluate potential manufacturing sites around the globe to serve the local markets. While we expect most of our production to remain in the US, we do need to establish local factories to ensure affordability for the markets they serve.”
If Tesla finalizes a deal, then the automaker would be able to work around the import tax that currently drives up prices of the Model S/X in China by some 50%.
China does typically require outside automakers to sign joint venture agreements with local automakers in order to manufacture vehicles within the country, so we expect Tesla will have to follow suit in this regard.